DEBATE: Is a Basic Income Better Than Welfare?

DEBATE: Is a Basic Income Better Than Welfare?

In May this year, Bryan Caplan debated with Karl Widerquist about Universal Basic Income (UBI) and Welfare at PublicSquare.net.

Widerquist is associate professor at the Georgetown School of Foreign Service at Qatar and vice-chair of Basic Income Earth Network (co-chair at the time of the debate). He sees UBI as a means to completely eliminate poverty and as a compensation for the government’s actions to turn resources into property, which creates groups of people that don’t have access to resources they need to survive. Widerquist predicts UBI will also have an increasing effect on lower level wages, as the payment for work will need to be high enough for a non-starving person to accept the job. In the current system, employers don’t have the incentive to provide good wages, according to Widerquist.

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Caplan is professor of economics at George Mason University. He thinks the idea that everyone should be supported by the government is ridiculous. Whatever charity is given should only be for to the people who need it, and UBI is therefore not a good idea, according to Caplan. Furthermore, it will discourage people from working and is not fair to people that are paying their taxes, he states.

 

Info and links

Photos: Karl Widerquist by BICN/RCRG Basic Income Canada Network, 2014 and Bryan Caplan speaking empathically by Eric Hanneken, 2015, CC-BY-SA 2.0

Special thanks to Dawn Howard for reviewing this article

Netherlands: Basic Income petition in the Netherlands for people over 55 years old was signed more than 50000 times

Netherlands: Basic Income petition in the Netherlands for people over 55 years old was signed more than 50000 times

Picture: credit to Radar.

 

In the Netherlands, the program Radar started a petition to persuade the government to give a basic income for people over 55 years old as an experiment. While a pilot is required to go through with it, only 3% of people nowadays get a full-time job at this age range.

 

The experiment could consist of 2000 people in the treatment group and 2000 people in the control group. In more than 100 comments and reactions to this petition, no one was against the initiative. The overall comments actually reflected the amount to pay, as state the following examples:

 

“I’m single and then 1000 euros is not enough if the surcharges are gone” (single mother)

 

“I totally agree (…) The basic income. 1000 or even 1500 € is insufficient at the current level of all fixed charges.”

 

“Scandalous to those who have served for more than 35 years with a boss and after almost 1000 job applications do not get started. He does voluntary work of sometimes more than 40 hours a week. We will be milked out…. If this continues, many people do not see the meaning of their life again and then wonder how they are. Government, shame on you!!”.

 

“I agree … I have signed because it’s a start, but 1000 € (…) absolutely not feasible to get around and certainly not when all surcharges disappear (…) When determining amounts, we must remain realistic. The witch hunt for compulsory job application must also be on the slope and quickly as well”.

 

The documentary video can me watched at the following link (in Dutch).

 

More information at:

[in Dutch]

Radar, “Petitie basisinkomen 55-plussers al ruim 50.000 keer ondertekend [Basic Income petition for people over 55 years old was signed more than 50000 times]”, Radar, June 2nd 2017

DENMARK: Political Party Alternativet discusses basic income at annual convention, creates working group

DENMARK: Political Party Alternativet discusses basic income at annual convention, creates working group

Photo: Political Laboratory on Basic Income at The Alternative’s convention (credit: Louise Haagh).

 

“The Alternative Facts”

 

Denmark’s green political party The Alternative (Danish: Alternativet) has adopted basic income as an aspirational goal and established a working group to investigate a precise model and implementational strategy for the policy.  

These decisions were formalized at the party’s 2017 convention, which took place May 27-28 in Odense, where basic income was a prevailing theme. Since its founding in November 2013, The Alternative has developed its policy positions through what it describes as a “political open-source process,” centered on political laboratories [link: Danish] at which party members and other interested individuals discuss and debate proposed policies. Its initial party program, for example, was influenced by the contributions of over 700 people who participated in political laboratories and workshops in early 2014. The recent convention in Odense featured such a political laboratory on the topic of basic income, which was attended by over 300 delegates.   

Haagh at the Alternative’s political laboratory on basic income

The political laboratory began with presentations of opposing views on basic income.

First, BIEN Chair Louise Haagh laid out reasons to support the policy, including, fundamentally, the idea that basic income is a democratic right. Haagh emphasized that basic income can be seen as a natural extension of the Nordic welfare model, an enhancement of the existing welfare state rather than its replacement. She also argued that, among other advantages, a basic income could provide an improvement for unemployed job seekers, as Denmark’s existing job centers are inefficient, producing a low employment rate and forcing customers to spend a large amount of time in administrative processes.

Following Haagh’s presentation, Kristian Wiese, Director of the think tank Cevea, offered reasons to be skeptical of basic income. Wiese worried that basic income is merely a palliative that fails to address the underlying problems of unemployment and precarious employment, and expressed concern regarding the policy’s support from neoliberals and Silicon Valley technocrats.

After the presentations, participants broke into small groups to discuss the relative merits and drawbacks of basic income. The discussion was framed around several questions–whether a basic income is a good idea if it can be introduced without extra cost, whether a basic income is likely to lead to more socially productive activity or less, and what new policies and procedures could be introduced alongside basic income to promote community and entrepreneurship–and responses from each group were collected. While no formal vote was taken, the general consensus of delegates was favorable to basic income, and the party decided to proceed with the development of a precise model to adopt as party policy.

To the latter end, the assembly established a working group tasked with the project of drafting a policy proposal on basic income for the party within one year. In addition to the proposal of the working group, The Alternative will await precise calculations from the Ministry of Taxation before endorsing any model of basic income as party policy. (Basic Income News will publish a follow-up report on the activities of the working group later in the year when more details are known.)

The Alternative’s current political program endorses the provision of benefits without work requirements or other conditions to uninsured social security recipients as well as to those covered by insurance through union membership. Basic income will be the third and final step in the party’s social policy reform. Even prior to the recent convention and political laboratory, party leaders such as MP Torsten Gejl have described The Alternative’s advocacy of the former policies as steps toward its eventual promotion of a universal basic income for Denmark (cf., e.g., Gejl’s talk at the book launch of Philippe van Parijs and Yannick Vanderborght’s Basic Income).

Torsten Gejl at UBI Nordic Conference (credit: Michael Husen)

The party has shown increasing interest in basic income in recent years, and has established close ties with BIEN-Danmark, BIEN’s Danish affiliate. The party was the official host for the two-day Nordic Conference on Basic Income Pilots, held at Christiansborg Palace, the seat of the Danish Parliament, in September 2016. Leading members of the party have continued to participate in basic income events in 2017. For instance, party leader and cofounder Uffe Elbæk spoke at the world premier of the basic income documentary Free Lunch Society, Josephine Fock participated in a debate at a seminar on basic income and the future of work, and Gejl spoke at BIEN-Danmark’s annual meeting, in addition to the aforementioned book launch.

The Alternative currently holds 10 out of 179 seats in the Danish Parliament, making it the sixth largest party in terms of representation.


Thanks to Louise Haagh and Karsten Lieberkind for information and suggestions for this article.

Post reviewed by Dave Clegg.

ONTARIO, CANADA: Campaign Research opinion survey on pilot project

ONTARIO, CANADA: Campaign Research opinion survey on pilot project

Hamilton, Canada. Credit to: CBC.

As reported before, the majority of the Ontario’s citizens support a basic income, but they want a pilot project. However, most think $17,000 (CAD) is insufficient to meet the basic needs of most citizens.

There was a poll by Campaign Research done on 1,969 people with 53% of people supporting the plan for a basic income. Young people, aged 18 to 24, were the most supportive age group at 59%.

Lars Osberg, professor of economics at Dalhousie University, said the poll was possibly inaccurate with, for example, the Atlantic Canada (63% support for the plan) sample at only 198 people. Liberals (62%) and NDP (63%) were the most supportive.

The pilot project has 4,000 people from three areas: Hamilton, Lindsay, and Thunder Bay. It emphasizes citizens with low incomes. Couples will get $24,027; singles will receive $16,989.

The first experiment will run one year without conditions. The reason for the experiment is to see if the basic income provisions will improve life quality and job prospects.

Osberg noted that the youth are the unemployed or the underemployed, generally, and that the basic income does not disincentivize work. Osberg thinks the basic income would not disincentive work, as some fear.

More information at:

Jack Hauen, “Majority support Ontario’s basic income plan, but many find $17,000 not enough: poll”, Financial Times, May 17th 2017

Eli Yufest, “Majority approves of Ontario’s basic income plan, many find $17,000 per year too little an amount“, Campaign Research, May 16th 2017

ITALY: 1000 squares for the “income of dignity”

ITALY: 1000 squares for the “income of dignity”

Naples. Credit to: Numeri Pari

Many associations, collectives, social movements, students and activists have joined the “Rete dei Numeri Pari” (Even Numbers Network – to which BIN Italia (Italian Basic Income Network) is also a part of), promoting a social campaign for the “income of dignity”. There will be 1000 squares across the country hosting public initiatives, debates and meetings where people will talk about the income of dignity proposal (a sort of guaranteed minimum income).

From the appeal: 1000 squares for the income of dignity
“Poverty, precariousness and inequalities are the reality of social suffering of millions of people in Europe and Italy, who pay the burden of a crisis they did not produce. All these people try to evade blame and responsibility, but we have not forgotten that it is the result of precise political and social choices. […] Over the years, we have witnessed the collapse of social policies: cuts in health, public transport, and social cooperation. We witnessed the rising cost of education and saw the right to study disappear from government agendas. Working conditions have worsened: the generations are divided between those who struggle to find a job and those who work in unacceptable conditions. This is evidenced by statistics on poverty, which now affects one Italian on three, while five million people are in absolute poverty.

We cannot wait anymore. […] Against growing social inequalities, it is necessary to affirm a new idea of ​​society and solidarity.

It is necessary to break the chains of solitude imposed by this economic system. We must guarantee the fundamental right to a life worth living. The introduction of a guaranteed minimum income and the provision of quality and universal public services are the bases for a new system of social welfare and social security to protect people from poverty, mafia and work without rights. […] Despite the mobilization of so many, many of whom have in the last few years created a proposal for “guaranteed minimum income”, the government has instead chosen to promote “Inclusion Income”, a totally unsatisfactory proposal for the number of beneficiaries and resources invested, which does not even respond to the needs of a third of the population in relative poverty. […] Government and parliamentary measures have introduced an unconstitutional form of “selective universalism” […]

From the 16th of June, the “Rete dei Numeri Pari” will be in the squares […] We will act alongside women who want to get rid of a model of patriarchal and masked society. We will act alongside migrants to build together the right to a true and friendly citizenship. We will be in the streets with students for free education. We will mobilize with the impoverished labor force: employees, intermittent, precarious, and all workers who suffer due to the burden of the labor policies of these recent years.

We will be in over one thousand squares to say that an alternative society is emerging from the bottom and that we must mobilize together.”

 

More information at:

[in Italian]

Numeri Pari, “Appello: 1000 piazze per il reddito di dignità [Call: a thousand squares for a dignity income]”, Numeri Pari website, June 1st 2017